Monday, April 14, 2008

Free our trade

India and Australia will launch talks on a ''high quality" free trade agreement (FTA) next week and have agreed on a joint feasibility study to remove impediments to bilateral trade. Officials of both countries are expected to meet in New Delhi next week.

''The FTA study will consider the feasibility of a comprehensive WTO-consistent agreement covering trade in goods, services and investment," Australian trade minister Simon Crean said, adding, the study on tariff liberalisation and removal of other impediments to trade is expected to be completed next year.

The study is aimed at bringing the FTA to a stronger level of economic partnership between the two countries. FTAs, he said, can be used to bring considerable mutual economic benefits as increased trade creates more jobs and investment and enhances the pace of growth-creating economic reform.

Cool! We could do the same, eh?

Oh, no; we can't.

Because, of course, we do not control our own trade policy: it is an EU competence. So, no matter how much we may want free trade with India, we can't get it unless the European Commission thinks it's a good idea.

Then, of course, they will send twice-disgraced Peter Mandelson—the EU Trade Commissioner—to India to negotiate on behalf of all of the EU countries. And if one of the 27 countries—France, for instance—doesn't like it, then we're fucked.

Amazing how people are up in arms about Tesco "limiting their choice" and "destroying high steets" while all it is doing is opening its doors and seeing who walks in of their own accord, yet they seem quite happy to let the entire nation have its choice limited or fined via tariffs if it does not. By "quite happy" I mean "blissful ignorance" sustained by the MSM and their framing and blinkers.

The Commonwealth Free Trade Area idea popped into my head when I first read about the Indo-Australian Agreement. But why have a free trade area rather than simply just unilaterally abolishing controls?

The only advantage I can think of is in game theory. By cutting off our noses to spite our faces, we might encourage other countries to also trade freely, thereby increasing the advantage to us if neither nation imposes controls.